The objective of the Fund is to seek attractive risk-adjusted returns (recurring yield and capital appreciation) by employing a disciplined investment approach to invest in Vietnam’s real estate projects. Key drivers of return are (i) profits from real estate development projects, (ii) recurring income from income-producing properties and (iii) exit of investments.
Investment Objective
Investment Strategy
- The Fund plans to invest in high quality industrial and logistics real estate projects/assets on a value basis
- We will focus on 3PL and e-commerce warehouses and cold storage facilities on a value-add and development basis, and factories for manufacturers on a sale & leaseback basis
- Focus on assets in good locations and with high barriers to entry
- We will work with our development and operating partners to leverage an operations-oriented approach to enhance value
- Seek to execute opportunistic exits in order to maximize value (IPO, strategic sale)
Fund Detail
| Fund Name | Vietnam Industrial & Logistics Real Estate Fund I
(“VILREF I”) |
| Fund Directors | Kiet The Truong |
| Reference Currency | USD |
| Fund Size | USD 100mn |
| Target Return | 20% IRR in USD (gross) |
| Investment Focus | Industrial & logistics real estate projects in Vietnam |
| Fee Structure | 2.0% annual management fee
20% performance fee |
| Hurdle Rate | 8% |
| Structure | Closed-end fund |
| Minimum Subscription | USD 250k for individual
USD 5mn for institution |
| Co-Investment Right | Co-investment right for anchor investors with subscription of USD 25mn |
| Expected Closing | 3Q 2021 |
Why Invest in Vietnam Logistics Real Estate?
- Macro Economic Growth and Political Stability: Vietnam is forecasted to grow at 7%/annum over the next 5 years, outranking other Asian countries, and is one of the most politically stable countries in Asia
- Supply Chain Diversification: As a result of the supply chain diversification effort, China’s manufacturing base is gradually shifting to Vietnam, increasing demand for Industrial and Logistics, a sector already in tight supply in Vietnam
- Strong and Consistent Foreign Direct Investment (FDI): A young and low-wage workforce coupled with Free Trade Agreements (FTA) involving more than 50 partners will continue to help Vietnam attract strong FDIs over the years, further boosting wage growth and domestic consumption
- Growing Middle Class and Urban Populations: The growth and maturity of Vietnam’s middle class and rising urbanization rate present compelling investment opportunities for Industrial and Logistics real estate
- Stable Yield and Capital Appreciation: Industrial and logistics assets in Vietnam offer stable/high cash flow yield and capital appreciation potential driven by tight supply (as evidenced by high occupancy, rising rent) and increase demand
- Covid-19 Impact: Covid-19 has created a short-term buying opportunity
| Competitive Advantages | Management Team | ||
| Leadership |
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Kiet The Truong
Managing Director
♦BA from Columbia University ♦Master from Harvard University ♦Chartered Financial Analyst (CFA) ♦Chartered Alternative Investment Analyst (CAIA) |
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